On closing of the acquisition of the Initial Property, Plymouth anticipates meeting the "Tier 2" initial listing requirements of the TSXV. pursuant to which M Partners has agreed to, among other things, act as lead agent with respect to an equity private placement financing (the "Financing"), on a commercially reasonably best efforts basis, to be undertaken by Plymouth in order to fund, at a minimum, the cash portion of the above-noted purchase price, and depending on the market conditions, to fund the acquisition of two additional U.S. Plymouth has entered into an engagement letter with M Partners Inc. The directors, officers and senior management of Plymouth will remain unchanged upon completion of the acquisition of the Initial Property. As such, the acquisition will not be a Non-Arm's Length Qualifying Transaction (as that term is defined in TSXV Policy 2.4) and approval of the Plymouth shareholders will not be required. The seller (the "Initial Property Seller") of the Initial Property is Flemington Investors, LP, a Pennsylvania limited partnership, which is unrelated to Plymouth or any of its directors and officers. Including the property improvement plan funding and closing costs and adjustments, the aggregate cost to Plymouth for the Initial Property is approximately US$10.3 million. Plymouth intends to satisfy the purchase price from the proceeds of a new mortgage financing on the Initial Property in the principal amount of approximately US$6.5 million, with the remainder of the purchase price to be paid in cash from the proceeds of the concurrent Financing (as defined below). ("Plymouth") (TSXV: PH.P), a capital pool company, announces today that it has entered into an assignment of an existing hotel purchase and sale agreement dated as of Decemto purchase a "Hampton Inn" branded hotel property located in New Jersey (the "Initial Property") for a purchase price of approximately US$8.5 million, excluding closing costs and adjustments and funding for brand mandated property improvement plan, as its "Qualifying Transaction" (as that term is defined in TSX Venture Exchange ("TSXV") Policy 2.4 - Capital Pool Companies). 3, 2013 /CNW/ - Plymouth Realty Capital Corp.
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